Pension manager BCI deploys more capital into private markets as it scales back stock picking

British Columbia Investment Management Corporation returned 6.7 per cent in the fiscal year ended March 31, missing its 7.6 per cent benchmark. It ramped up its investments in private markets, despite their mixed performance. (The Logic)

Talking point: BCI, which manages $265.4 billion in assets, deployed a new $2.7 billion into private debt and $6.7 billion into new private equity investments—nearly three times the prior year’s level. At the same time, it is pulling back from traditional stock picking. Canadian equities returned 22.9 per cent—missing the manager’s 34.8 benchmark—and global equities gained 16 per cent. Executive vice-president of investment strategy and risk Ramy Rayes told The Globe and Mail that stock selection is no longer BCI’s “competitive advantage,” and that the fund has wound down certain active equity strategies in favour of more index-oriented approaches. The shift comes as Ottawa seeks to encourage Canada’s largest pension funds to invest more domestically. BCI currently has $116 billion invested in Canada, representing nearly 37 per cent of its assets.